AZspot

blue bits. red rocks.

There is, of course, a very plausible model of why higher taxes can help promote prosperity: jobs are not created by wealth (it’s actually the other way around: wealth is created by jobs). Jobs are created by demand. Enmployers don’t hire people because they have money, they hire when — and only when — there is more demand for their product than they can meet with their existing work force. So it is no coincidence that prosperity coincides with high marginal tax rates (and, I might add, strong labor unions). The best way to generate demand is to, as conservatives like to say, “broaden the base” and operate under rules that benefit the middle class and poor even if this comes at the expense of the very rich. This is because the less money you have, the more of it you spend as a percentage of your income. A single person can only consume so much, so a million dollars in the hands of one person produces less demand (and hence fewer jobs) than the same million in the hands of, say, ten people. Rondam Ramblings

96 notes

  1. pre-elf reblogged this from barbitone
  2. barbitone reblogged this from politicalmachine
  3. jaunty-cavalcades reblogged this from truth-has-a-liberal-bias
  4. the-cinnamon-peelers-wife reblogged this from politicalmachine
  5. awalt2069 reblogged this from azspot
  6. intheshadowofyggdrasil reblogged this from truth-has-a-liberal-bias
  7. veesee reblogged this from truth-has-a-liberal-bias
  8. frightened0f-infinity reblogged this from politicalmachine
  9. seamusiteverwas reblogged this from azspot
  10. golly-wolly-goshen-cakes reblogged this from truth-has-a-liberal-bias
  11. bootstrapsforall reblogged this from truth-has-a-liberal-bias
  12. hairtrending reblogged this from truth-has-a-liberal-bias
  13. raw-infraction reblogged this from politicalmachine
  14. themadnessexperience reblogged this from truth-has-a-liberal-bias
  15. sarcasmisfluffy reblogged this from truth-has-a-liberal-bias
  16. politicalmachine reblogged this from truth-has-a-liberal-bias
  17. nametags reblogged this from truth-has-a-liberal-bias
  18. whysomuchhatred reblogged this from truth-has-a-liberal-bias
  19. truth-has-a-liberal-bias reblogged this from other-stuff
  20. jessicathemess reblogged this from azspot
  21. theotakuscientist reblogged this from redcloud

A GNT creation ©2007–2014